The Federal Deposit Insurance Corporation Board is considering a proposed rule to modify the enhanced supplementary leverage ratio (eSLR) for US global systemically important banks (GSIBs), replacing the existing eSLR standards with a buffer linked to each firm’s GSIB capital surcharge. Under the proposal, the new buffer would equal 50 percent of a GSIB’s capital surcharge calculated under method 1 of the Federal Reserve’s GSIB surcharge framework and would apply at both the holding company and bank subsidiary levels. The FDIC estimates the change would reduce aggregate required Tier 1 capital at the holding company level by approximately USD 13 billion, or about 1.4%, and is intended to reduce leverage-driven constraints on low-risk activities such as US Treasury market intermediation. Acting Chairman Travis Hill indicated the FDIC will review public comments on the proposal.
Federal Deposit Insurance Corporation 2025-06-27
Federal Deposit Insurance Corporation proposes 50 percent GSIB-surcharge buffer to replace enhanced supplementary leverage ratio add-on cutting required Tier 1 capital about USD 13 billion
The Federal Deposit Insurance Corporation Board is considering a proposed rule to modify the enhanced supplementary leverage ratio (eSLR) for US global systemically important banks (GSIBs), linking it to each firm’s GSIB capital surcharge. The change is expected to reduce required Tier 1 capital by approximately USD 13 billion, or about 1.4%, and aims to alleviate leverage constraints on low-risk activities. Acting Chairman Travis Hill stated the FDIC will review public comments on the proposal.